Cracks for very low sulphur fuel oil (VLSFO) traded higher in Asia on Tuesday in volatile trading, though ample prompt supply still capped recovery in the spot market.
Singapore’s VLSFO crack closed at a premium above $7.60 a barrel, higher than $6.75 in the previous day, based on data compiled by LSEG.
The crack for 380-cst HSFO also edged higher, closing at a discount near $3.35 a barrel.
Market structure for both VLSFO and HSFO were little changed day-on-day, though the spot market differential for VLSFO was pegged at a narrower discount. The heavy arrivals of low-sulphur blending crudes in recent weeks continued to weigh on the market, analysts said.
Meanwhile, the hi-5 spread, which reflects VLSFO’s premium over 380-cst HSFO, closed the trading month at about $70 a metric ton. The premium had widened in recent sessions, but still compared lower to about $85 seen at the start of the month.
REFINERY UPDATES
– Singapore’s Aster Chemicals and Energy is investing $125 million to upgrade its single buoy mooring and pipeline infrastructure near Bukom refinery, the company said on Tuesday.
WINDOW TRADES
– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters
